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Hagerty Q1 2025 Earnings Report
Hagerty reported strong first quarter 2025 results, with significant increases in total revenue, net income, and Adjusted EBITDA, and reaffirmed its 2025 outlook for continued growth.
Key Takeaways
Hagerty, Inc. announced a robust start to 2025, with first quarter total revenue increasing 18% year-over-year to $319.6 million, net income surging 233% to $27.3 million, and Adjusted EBITDA growing 45% to $39.6 million. The company also reaffirmed its 2025 outlook for total revenue growth of 12-13% and net income growth of 30-40%.
Total Revenue increased 18% year-over-year to $319.6 million, driven by strong performance across all segments.
Net Income saw a significant jump of 233% year-over-year, reaching $27.3 million.
Adjusted EBITDA grew 45% year-over-year to $39.6 million, indicating improved operational efficiency.
Marketplace revenue experienced exceptional growth of 176% year-over-year, primarily due to higher inventory sales.
Hagerty
Hagerty
Hagerty Revenue by Segment
Revenue by Segment
Commission & Fee Revenue
CapyFin.comEarned Premium Revenue
CapyFin.com Forward Guidance
Hagerty anticipates continued strong profit growth in 2025, driven by investments in its technology platform and sustained growth across its Insurance, Membership, and Marketplace businesses.
Positive Outlook
- Total Revenue growth projected at 12-13% for full year 2025.
- Net Income growth expected to be 30-40% compared to 2024.
- Adjusted EBITDA growth anticipated at 21-29%.
- Operating margin expansion is expected to drive faster rates of bottom-line growth.
- Strategic investments in a new technology platform (Duck Creek) will help efficiently grow the business.
Challenges Ahead
- Profit ranges incorporate $20 million of elevated technology investments in 2025.
- An estimated $10 million pre-tax impact from the Southern California wildfires is included in profit ranges.
- General and administrative expenses increased due to software-related costs.
- Sales expense increased significantly due to higher inventory sales.
- The company's ability to manage the cyclical nature of the insurance business and unexpected increases in claims could impact results.